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Auto Insurance FAQs | Homeowners Insurance FAQs
Auto Insurance Information Who is covered under an auto policy?
Your policy covers you, your spouse, other relatives who live in your household and others who have permission to drive one of your covered vehicles. In a No-fault insurance state,
your own policy would provide coverage for bodily injury and/or property damage without regard to fault. Some policies have Named Operator provisions which requires that all drivers
must be listed on the policy to be covered.What is covered under the liability coverage of my policy?
The Liability coverage in your auto policy pays damages which an insured becomes legally
liable to pay because of bodily injury damage to others and property covered by an accident resulting from the ownership, maintenance or use of your car. Most state laws require that
you carry a minimum amount of liability insurance. The California minimum for Bodily Injury is $15,000 per person and $30,000 per accident. Are there other, optional coverages available?
Once you've met the minimum legal liability requirements, you should select other types and amounts of coverage to tailor your policy to your own needs. In addition to Liability coverage
to protect you when you do damage to others, here's what an auto policy may cover:
- Damage to your car.
Your car may be covered against collisions it may have with any other object, if you select collision coverage. Your car may also be covered against damage caused by
other events such as vandalism, theft, broken glass, storms and falling objects, if you select "other than collision" coverage.
- You and your passengers against uninsured or underinsured motorists.
If you're hit by someone who either doesn't have insurance or doesn't have enough
insurance to cover the accident, uninsured motorist coverage and underinsured motorist coverage may provide additional protection. (In some states this coverage is mandatory.)
- You and your passengers for medical costs.
Your policy may provide coverage for reasonable and necessary medical and/or funeral
expenses incurred as a result of injuries sustained in an accident, if you select medical payments coverage and/or, if available in your state, personal injury protection coverage.
- Towing and rental reimbursement.
Reimbursement for towing each time a covered auto is disabled up to a specified company limit. This coverage does not apply to towing of a covered auto due to a
parking violation. Also included in motorist protection is emergency transportation. The company will reimburse an insured (up to a company specified limit) for the costs of
emergency transportation from the place of a covered accident arising out of the operation, maintenance or use of a covered auto to:
- such place as the emergency may require;
- the intended destination;
- the insured's residence.
What is Uninsured Motorists Car Damage coverage?
Uninsured Motorists Car Damage coverage pays for damage to your automobile, that you are
legally entitled to recover from an uninsured motorist, when caused by an accident where there is physical contact with the uninsured motorist's vehicle. Coverage provisions include a
requirement that either the uninsured motorist be identified, or that the uninsured vehicle be identified by its license number. In addition, the accident report must be made available to us
within 10 business days following the loss. The coverage is limited to the lesser of: (1) the amount necessary to repair your car, (2) the actual cash value of your car, minus the value of the salvage, or (3) $3,500.
Am I covered for rental car expenses if my car is inoperable?
Only if you have rental car reimbursement coverage added to your policy.
Will my teenage son/daughter be covered if he/she drives my car?
Yes, as long as they have a valid drivers license and have been added to your policy.
If I let a non-family member drive my car is he/she covered in the event of an accident?
Yes, as long as they have a valid drivers license.
What is the difference between collision and comprehensive coverage?
Collision covers physical damage resulting from accidents with another vehicle or a fixed
object. Comprehensive covers losses other than collision, subject to policy exclusions.
Homeowners Insurance Information If you own a home, mobile home, or condominium, you will want to insure your property and
household effects by investing in homeowners insurance. Chances are you will already have insurance on your home, if you have a mortgage on the property, since most lenders make insurance a condition of the loan.
Homeowners insurance offers the most comprehensive coverage available. However, most homeowners policies will not protect you from a flood, a hurricane, or an earthquake loss.
- Homeowners insurance pays claims for damage to your home, garage and other outbuildings; and for loss of furniture and other personal property due to damage or
theft, both at home and away from; and homeowners insurance pays for additional living expenses if you rent temporary quarters while your house is being repaired.
- Homeowners insurance includes liability for bodily injury and property damage that you cause to others through negligence, and for accidents happening in and around your
home, as well as away from home, for which you are responsible.
- It also pays for any injuries occurring in and around your home to persons other than you or your family. Medical payments coverage also pays claims for injuries outside your
home that are caused by you, a family member living with you, or by your pet.
- Homeowners policies generally provide limited coverage for certain money, gold, jewelry, and stamp and coin collections.
When deciding how much insurance coverage to buy, consider the cost and how much you can afford. Assess the cost of replacing your house if it is totally destroyed, and determine
what the present value is of your furniture and personal belongings. Do you want to be fully reimbursed when a loss occurs? Or, for a lower premium would you be willing to accept partial
payment for the loss or damage? Remember that buying a higher deductible is another way of decreasing your insurance premium.
Replacement cost coverage pays for the cost of rebuilding your house if it is destroyed by fire or other specified disasters. Replacement cost coverage will also pay for personal belongings,
but usually at an additional premium. Your homeowners policy can also reimburse you on the basis of "actual cash value" only, instead of replacement cost. Actual cash value covers the
cost of repairing the damaged property only to its condition just before the loss, or replacing damaged property with a substantially similar item.
For first-time home purchasers, here are some things to keep in mind when buying insurance:
- Deal with licensed insurance agents who work for companies licensed to sell insurance in Hawaii.
- Shop around to get the best coverage at the best price. Ask the companies you're interested in how they settle their claims. Check with friends and acquaintances to verify the companies' reliability and service.
- Keep a complete list of your important personal belongings and their original cost. This list will help you determine the total value of your personal effects and identify what
has been lost in case of fire or theft.
- Read your homeowners policy carefully. Look for any exceptions, restrictions or limitations that will affect your coverage. Your mortgage lender may require you to purchase a separate flood or hurricane policy.
If a tree in my yard is struck by lightning and crashes into my house am I covered?
Yes. Damage to the house and removal of the tree is covered.
Will damages caused by a furnace puff back be covered by my homeowners insurance?
Cleaning expenses are covered. My pet damaged my carpet. Can I claim it on my insurance?
No.
A flood destroyed my home. Am I covered?
No. Flood coverage is excluded under your homeowner policy. A separate flood insurance policy would cover the loss.
An earthquake damaged my home. Am I covered?
Only if you have an earthquake endorsement on your policy. What are the differences between actual cash value/replacement costs and all
risks/named perils?
Replacement cost is the current cost to replace an item. Actual cash value is the replacement cost less depreciation for age. Special form coverage covers all losses except those that are
excluded. Named perils cover only specifically named perils such as fire, lightening, windstorm, etc. Is all my personal property automatically covered under my homeowner policy?
Yes. However, there are limitations on certain items. A visitor slipped and fell on ice and is suing me. Am I covered?
Yes, up to the policy limit of your comprehensive personal liability. Should I advise my agent every time I make a home improvement?
You need to make sure that your home is always insured for at least 80 percent of its
replacement cost or you will be subject to a co-insurance penalty in the event of a claim. Will my homeowner's policy cover me if my wedding ring is stolen or lost?
Your homeowners policy will cover the loss only if there is reasonable thought that a theft occurred up to $1,000. If you need more coverage a policy should be purchased with the
value based upon an appraisal of the item. Why should I purchase earthquake coverage?
Earthquake coverage is not included in your homeowner policy. Since 1900 earthquakes have
occurred in 39 states and caused damage in all 50. Nine out of 10 Americans live in seismically active areas. Why should I buy renter's insurance?
It is inexpensive and covers personal property in your apartment. It also provides limited off premises coverage, motel costs in the event that you had to evacuate the building overnight,
and court expenses if you were found liable for an accident in the apartment that resulted in someone else's injuries. |
